Archive for January, 2016

A newly launched cyber risk exposure data standard could put in place the groundwork for the development of parameters and metrics to be used for future triggers for cyber risk ILS or reinsurance transactions.

Zurich Insurance Group said this morning that it expects to record a loss in the fourth-quarter of 2015 in its General Insurance business, due to natural catastrophe claims including the impact of UK storms and flooding, even after reinsurance recoveries.

Ongoing pressure in the insurance and reinsurance sector suggests that achieving a 10% or greater return on equity across the industry is likely “impossible” as both underwriting and investment returns remain depressed, according to Stephen Catlin.

Karson Management (Bermuda) Limited, led by veteran of the insurance-linked security (ILS) and alternative risk financing sector Derrell Hendrix, alongside BNY Mellon have announced the successful completion of the first K-Note reinsurance collateral financing transaction in Canada.

This third in our series of articles featuring the thoughts of leading figures in insurance-linked securities (ILS) and reinsurance on the market as we move into 2016 features Andrea Cavalleri, Head of Life and Neil Strong, Head of Non-Life at Securis Investment Partners LLP.

Total non-life insurance-linked securities (ILS) capital increased by 8% over the course of 2015 to reach $70 billion at the end of the year, thanks to increasing interest from insurance and reinsurance sponsors and growing investor confidence, according to WCMA.

In a clear demonstration of investor appetite for higher-yielding catastrophe bond notes, the price guidance on all three tranches of the $300m Galileo Re Ltd. (Series 2016-1) international multi-peril cat bond issuance from XL has dropped to below the lower-end of the initial range.

Rates, pricing and conditions held up best for private ILS transactions at the January reinsurance renewals, according to insurance-linked investment manager Twelve Capital, with rates only dropping around 5%.

Tokio Solution Management Ltd., the collateralized reinsurance, insurance-linked securities (ILS) and reinsurance convergence facilitating arm of Tokio Millennium Re, has announced the appointment of Butch Agnew as Vice President, ILS Portfolio Management today.

In December 2015, registrations of new insurance and reinsurance vehicles in Bermuda featured a number of ILS and collateralized reinsurance focused vehicles, with four new special purpose insurers (SPI’s) taking the total for the year to twenty.